The partnership between Google and Sun can lead to several more things than their addition of the Google Toolbar to the JRE (java runtime environment), which will allow it to be added to their products. Though they have not announced anything along this line yet, there have been rumors about them developing a web based version of OpenOffice.
Both Sun and Google are being vague when it comes to discussing their plans for the future, though it is obvious it will involve java and the web. And according to several articles on the Sun Microsystems website they are still quite involved in the development of OpenOffice.
October 4, 2005 - Press Release on Sun's Website
Sun Microsystems
The agreement between Sun and Google also kicks off further collaboration between the companies on projects like OpenOffice.org, the open source productivity suite that is the world's leading suite on the Solaris Operating System (Solaris OS) and Linux--and the leading alternative suite on Microsoft Windows.
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I freely admit that Sun's Software development days seem to be diminishing, but as I said before...We'll see what happens; this partnership could revitalize them in an unexpected way.
Personally, I'm hopeful for competition and innovation. I have to teach the Microsoft Office suite at my day job and I get to hear first hand the complaints that students have over usability. Perhaps this will lead to some better products from both Microsoft and Sun/Google.
Cheers